"candy crush", king digital. zynga is up 3%. [closing bell ringing] david: certain sectors really popping. airlines doing really well. people said i have the winter fatigue. i don't care if the plane is not on time i want to go down south! peltz ringing on wall street. as i mentioned before, not a lost conviction. we've had slower days. there was volume today. just wasn't as forceful as a lot of people would have liked. look at russell two thousand. we have a debate coming up, cheryl. you talked about it before. people that believe in the warren buffett view of the big caps stocks or whether people believe in the russell 2000. what will do better over the long haul? we're talking about a 10-year period. >> i was loose looking at some of the sectors moving today. health care was loser yesterday, david, and big winner. david: true. some biotech sectors came back as well. we have got a debate on that as well. a lot of people thinking biotech was a bubble. we have people that say stick

with it, it is going strong. cheryl: we have front page headlines to bring you. looking at new home sales falling more than expected last month, hitting a five-month low. commerce department said annual rate dropped to rate of 444,000 units dropping 3.3%. david: this is the little bit ahead of wall street forecasts. cheryl: the pharmacy giant all greens reporting lower than expected quarterly profit but stock rose after the company said it sees larger boost this year with partnership with europe alliances. david: shares of largest cruise ship operator carnival not doing well. it fell after the company said estimates of full-year profit falls short of annual forecast. carnival might report a loss for the current quarter. cheryl: rack space's stock jump after upgrade from morgan stanley. "wall street journal" says rack space's sales should benefit on

focus of cloud computing software after a dismal 12 months. "after the bell" starts right now. david: time to break down today's market action. we have paradise asset management chief investment officer who says u.s. equities are overvalued. jonathan brodsky will tell vest why they should reallocate gains and larry shover joining you from the consider me. larry i want to start with you. as i mentioned before volume not very strong today. is there lack of conviction in this rally? >> i think so. very, very lumpy day. we hid hard out of the gain, a strong, robust opening today and gave way to general apathy and indifference to the market. seems right now we're in this range of 1840 to 1880 and traders are no different than the fox people watching television right now.

we want to know what is it going to take to get out of this range of 1840 to 1880. given that it makes people not trade this market. they're on the sidelines. cheryl: jonathan, looking at volatility that is on your radar right now and you're looking for other investment opportunities to play that volatility. how are you doing that? >> we look at the market and we're trying to find value globally. while we see value in the u.s. specifically, in individual names. less so in the indexes. we see a lost opportunity outside of the u.s., specifically in markets in the emerging markets, as well as japan. so what we're looking for is take some gains from the u.s. market and move it into some markets where valuations are significantly lower. david: boy, i don't know. we'll talk in more detail in a minute. i want to get tim in here for a second on emerging markets. i heard brazil may be rationing energy. the current president, used to be the energy minister. she wore sha would never happen.

looks like brazil as one emerging market will do badly in the coming months, tim? >> you're hitting, it is interesting you're bringing that up, guys because it is one of the themes we've had for some period of time is this delusion of energy aabundance and energy independence across the board. i don't anything particularly about brazil in specific way on the equity side but actually doesn't really surprise us given we've been talking about this for the last year-and-a-half. david: you're dumping on natural gas. why? >> no. i'm actually, that's the exact opposite. as a matter of fact what we're seeing in the natural gas space is a continuation of this belief that these supplies are going to be, you know, readily available and we have gone now from an, excuse me from an importing game four or five years ago to an exporting game and we think that is absolute dilution.

we think the nature of shale reservoirs and whole unconventional business is very, very misunderstood. what we're saying it will be very difficult for u.s. inventories on the gas side to be replenished over the coming months. david: let me, i don't want to step on cheryl's turn i want to put a fine point. what you're saying is we have been too generous or too optimistic about natural gas and abundance of it and therefore the supply is going to be smaller we thought. therefore the price is going up, did i get it right? >> absolutely right on the button. cheryl: i was going to ask jonathan what he thought. respond to what he is saying here? >> this is just another piece of negative information that we've heard about emerging markets in brazil and other areas around the world of for us these are short-term issues and they will resolved. we're looking out midterm to long-term time horizon. when you have the negative news flow continue to impact the market it gives an interesting long-term opportunity because

valuations reflect these concerns. as a matter of fact in a lot of these markets we're seeing underperformance of 30 to 40% over the last few years. if you have a long-term time horizon the market is giving you an interesting opportunity to start investing in some of these beaten-down areas. david: jordan, let me talk to you specifically about china because there has been a lost negative information coming out about china. in fact it is not only driven china's market and asian markets but our market as well has gone down as a result of it. do you think it is buy on the bad news? is that what we should be doing right now? >> well you have a lot of structural reforms enhancing that market, valuations at trough levels right now. so again, it really depends on what your profile is as an investor. if you're looking over short-term time horizon there will be hiccups. but if you're looking over a long-term time horizon and see structural enhancements that the government is enacting they're going to take some time but ultimately it will create a more stable economy and a growing

economy for that matter. david: thank you, jonathan. i called you jordan. forgive me, jonathan. >> no problem. cheryl: i want to bring larry into this because we're talking about economic data overseas. we're getting a lot of economic data this week in this country. you have got the jobs report necessary week, larry. i'm kind of interested what the tea leaves a telling you? >> we have global pmis coming out and emerging markets is hard to paint them with a broad brush but everyone is different. a lot are in late cycles. on the floor, everybody is pen serves, everybody is waiting. whether it be agriculture and whether it be energy and there are some riding on data points coming it especially next week and ec about and yellen speaking next week. a lot of things right now, everybody is on edge no matter what complex we're talking about. david: tim, i want to support you in a strange way because i don't necessarily buy your argument that we've been too optimistic about natural gas. i think that the evidence has been all over the board.

i'm not sure we have as much as opt misses say and i'm not sure we very have as little as you say. i think you're right prices are going up because we saw congress give fast track for export facilities for liquified natural gas. we'll export lng to places like europe that want independence from russia. that could drive up the price, am i right. >> let me give you some data points when you you're saying you don't agree and kind of agree, let me tell you what reality is. the reality couple years ago, obama came out in 2012 state of the union speech talked about 100 years supply of natural gas. david: right. >> we consume, this is math. this is the problem with the country when they're not focused on this. and that is we consume, let's call it 24 trillion cubic feet of gas every year. that is going up. we all understand that we've gone all-in on this the about, right? the notion of electricity

generation is nat-gas fired, right? we're getting rid of coal. we're getting rid of nuclear, et cetera. you understand that we import gas every day. we're getting somewhere between 5 and 6 billion cubic feet a day from canada. canada has their own issues. they will use a lot of their own gas to retail their storage and develop oil sand. we're a net importer of gas at this point. give you one other data point. david: quickly. >> a couple years ago the estimate that came out of the marcellus was 450 trillion cubic feet of gas by the eia look it up. the u.s. geological survey came out two months later and said there is 85 trillion cubic feet. cheryl: get jonathan in before we let you go. jonathan, respond to that i know you're looking overseas for opportunities. tim is talk u.s. domestic long term opportunities. yes or no, jonathan. >> we're very bullish long term on the u.s. energy supply not only in the domestic market but for export purposes as well.

we spend a lot of time investing in places like japan and korea where demand is extremely strong. we see an outlook for resources long term but it will take quite a while to buildout the infrastructure. cheryl: tim, jonathan, larry shover. we'll come back to you, larry shortly for the s&p futures close. thank you. david: thank you very much, guys. >> thanks a lot. >> so betting against buffett, one strategist says he will go against the "oracle of omaha." he has got the numbers to prove it. he is joining us in just a moment. david: also the case for lifting restrictions on u.s. natural gas exports. gaining momentum, both republicans and democrats voting for it, but, if somebody is voting against it? ceo of a company who says it's a terrible idea and could end up hurting us all. it leads us to our question for you. do you think we should begin to export natural gas in order to pressure russia and maybe do well by our natural gas producers? tweet us, fbnatb, your answers later this hour. ♪ ♪

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how much money do you think you'll need when you retire? then we gave each person a ribbon to show how many years that amount might last. i was trying to, like, pull it a little further. [ woman ] got me to 70 years old. i'm going have to rethink this thing. it's hard to imagin how much we'll need for a retirement that could last 3years or mor so maybe we need to approach things dferently, if we want to be ready for a longer retirement. ♪ david: cast light keeps moving lower. cheryl: nicole petallides on floor of new york stock exchange. nicole? >> we watch the ipos and ip

offsare so exciting but not for the faint of heart. some run up. some to the downside. they get quite volatile and castlight health is real example. down five .25%, hitting a new low of 24.31. if you have the ipo, you're okay. it was a $16 ipo. this thing went crazy on its ipo day. we saw it up almost 150% one point. went as high as almost 42 bucks. it still is moving lower. not breaking through the ipo price which is good news but everybody thought it was so hot, maybe they're a little disappointed as they have been seeing it pull back. david: bad news. nicole, thank you very much. cheryl: so the s&p futures are closing. let's head back to larry shover in the pits of the cme. larry. david: exciting. >> thank you. right now, the s&p 500 is year-to-date is up 1%. compared to this time last year we were up 8.25%. year before that we were up

11.5ers in. clearly we're in a different market. we're in a market of stocks. not a stock market. that makes it very difficult for traders to know which way is up. right now we're stuck in a range that is pretty broad and volatile, 1840, 1880 and theories are abounding what will change the narrative. there are many of them. we don't know what all it will be. what we have to keep in mind is keep watching fox business but also keep a diversified portfolio because slow and steady will always win the day. cheryl: keep watching fox business. we'll leave it there. larry shoafer. there you go. david: thanks, larry. thanks for the plug as well. fast tracking permits for natural gas export terminals may seem like a no-brainer. our natural gas producers would find a wider market for product while russia would have less success in blackmailing ukraine and other parts of europe who are dependent on its gas. not all folks share the optimism.

we have peter hundreds man, hundreds man ceo and president -- huntsman. he is is not a big fan of pushing our natural gas overseas. thanks for being here. you've written eloquently about that tell us why you're against this, increasing our number of ex-pour facilities. >> david, thank you very much for the opportunity you've given me to be here today. david: sure. >> i think this is generally a bad idea all around. look the united states has about 5% of the world's natural gas resources. and for us exporting natural gas instead of exporting the downstream derivatives, whether export natural gas or whether be a low cost producer of automobiles and aircraft and chemicals and building materials? this is a fundamental question we need to be asking ourselves. in addition if we export natural gas, that gas is destined to china, japan, korea. it is not going to europe and not going to the ukraine where russia is already connected to this area -- david: let me stop you there,

peter, and i want to focus how it will affect businesses here but as we have people from lithuania, we have people from poland, we have people from all over eastern europe and the rest of europe who are now dependent on natural gas from russia who say, please, please, increase your export capacity. we understand it will take years to buildout these facilities but start now. why are they wrong? why do you think they're wrong? >> well the gas that is going to be exported from this country today, ask the gas producers, it is going to japan. it is going to china. it is going to south korea. it is not going to europe. >> peter it is now. but what they're saying you have to begin the export facilities now so that eventually you can do that. you know how people and markets discount what has happened for future. they have already, the minute that we agree, we have 24 or so export terminals now pending approval by the u.s. government. it is true that the obama administration just approved one

in oregon this week but, if they are approved, you know that will affect natural gas in the future, no? >> oh absolutely. in order to build these facilities, david, you have to have contracts on the opposite side. so that gas is essentially been spoken for. and so when you look at this, we're looking at these permits that have just been put in line today. these are not new permits. these are existing permits, being able to export up to nearly 50% of the natural gas we produce today. now if you think gas prices were high this winter that we just went through, where we weren't exporting virtually any gas, wait until we're exporting half of the gas of north america. these people in poland and in eastern europe and ukraine they have capability of fracking gas and have resources just like we do. why don't we export our technology and know how. david: we're doing that though, peter. we are doing that right now. so far we haven't had a lost success. i agree with you, some of the

countries like germany, for example they have what amounts to a ban on fracking. they have to get rid of that old mentality because you might find good natural gas reserves there. poland is already doing this they're beginning this. this is just another means the loosening the stranglehold russia has over these countries. >> again i want to go back to the idea if we export gas from this country we're going to, the gas companies will export it to the highest priced consumer. david: of course they will. >> that is not lithuania. david: it is japan, it is asia. >> asia. why do we want to make asia more competitive than they already are? david: well we have a product we want to sell. we believe in free trade and commerce. that is the idea, no? >> well, right now energy prices by and large globally, particularly outside of north america are set by opec. we won't even go down that road, largest illegally operating cartel in the world. let's focus on the united states. our industry and other

industries such as the aluminum industry and others we're investing over $100 billion in gas consuming, energy consuming, facilities that will add over one million jobs over the next -- to bid the u.s. industry. david: peter, i have to stop you there. for me, i'm getting deja vu again, what it remind me of, you're too young to remember, late 70's we had price controls on oil, a lot of people in petrochemical, face it what you are against is the price of natural gas going up and a lot of americans are against it too because you use your natural gas for petrochemicals. people made the same argument from all the same argument about price controls, removing price controls on oil back in the late '70s. when reagan did it in 1982, yes you had initial spike up in the prices but eventually when price controls ended the prices came down dramatically. couldn't the same happen with natural gas? >> well if you want to look at the most open an freely-traded gas markets in the world, they're right now today in

north america. and that will be the same in 10 years. if we want to start exporting our gas to market that is are largely controlled by the price of oil, alternative to gas, where you're looking at gas being priced two to three types higher, why is it our responsibility to be, to be supplementing the materials going over to korea and these asian competitors of ours. david: i know. >> we don't even have free-trade agreements to these countries where we export agricultural good and automobiles. it is broken. david: it is a political question. i hate to get involved in politics but it is involved here. republicans are in favor of increasing export facilities and a lot of democrats are too. mary landrieu, there are a lot of petrochemical companies in the state of louis that she -- louisiana represents but she is very much in favor of increasing export terminals as well. how do you fight against against this political forces on both the republican and democratic side, not to mention the obama

administration? >> well, look, i personally won't be able to do mig here, but if the average consumer in the united states understood what this is going to do to their heating bill, and to their utility costs, and the average person's working in manufacturing, knowing that now their costs of the companies where they're working will be less competitive, that is where popular support has to begin. i think longer term, if we have an alternative of selling our gas into artificially-high markets, if you want a free market you have got it right here in the united states. you can produce gas and sell for anything you want and can consume gas and buy it for whatever the market price is. let's not bring in these artificial barriers and government subsidies and so forth that are taking place. david: we don't want that, that is for sure. peter, we have to leave it at that. we don't always agree with with you but come back and see us again. peter huntsman, huntsman ceo. thanks a lot. join us in the conversation.

do you think we should export natural gas to pressure russia? tweet us@fbnatb. go to our facebook page, facebook.com after the bell. it is an important issue. cheryl: president obama announcing big reforms in the way the natural security agency sweeps up phone records and then stores them. we go to washington to find out what these changes mean for americans an phone companies. david: investors are playing defense with biotechs after a huge run-up over the past year. is of the biotech bubble popping or are there still big opportunities ahead? we have two contrasting views straight ahead. ♪

david: time for a quick speed read of some of the day's other headlines, five stories, one minute. disney a acquiring a leading maker and district tore of videos on youtube. disney will pay an initial sum of $500 million. tokyo court ruled that iphone 4 s and ipad 2 did not infringe on samsung's patents. apple will not have to pay damages to samsung. this ask first time how often the federal agencies notified private sector of private intrusions. mike cavanagh is leaving to join the private equity giant carlyle group. he was thought to be successor to jpmorgan's ceo jamie dimon.

san francisco is adding tech jobs faster pace than silicon valley. 57% gain in tech jobs from 2010 to 2013 compared to silicon valley's 14% climb. that is today's "speed read." cheryl: the president announcing a proposal to overhaul the national security agency, the new plan would end government collection and storage of massive amounts of data. david: a judge would be involved in overseeing data searches in the future. peter barnes is live in d.c. with the very latest details on all this. peter. >> that's right, david and chairman. in a press conference in the netherlands where he was finishing up his nuclear security summit the president was asked about reports that he has settled on a plan to reform the nsa and its collection of telephone calling data. he indicated that the government will no longer store this bulk data under a proposal that he is about to advance. he had suggested that this data could be stored by third parties. congressional leaders say it

will be the phone companies themselves. the president said his proposal, an outgrowth of leaks by edward snowden, would require a judge to oversee each data search. he did say that specifically today in his press conference. he said the idea is to slowly, systematically incorporate checks, balances and legal process into phone data collection bit nation's spies which congress is ready to enact with pending legislation. >> there has to be a narrow purpose to it, not a broad based purpose but it is rather based on a specific concern around terrorism or counterproliferation or human trafficking. >> what we basically are doing is, number one, ending bulk collection. the government will no longer, with our new bill be able to have the metadata. >> now the house legislation would provide telecom companies with protections from legal liability in data requests and continue to reimburse them for

expenses they incur. david and cheryl. cheryl: peter barnes. peter, thank you. david: thanks, peter. legendary investor warren buffett has made billions through smart investing but is he missing a big opportunity? our next guest made a bet, a very big bet, that small cap stocks will outperform buffett's berkshire hathaway over the next 10 years. he is here to tell us why he thinks el win. cheryl: what do wendy's and jcpenney have in common? both made morgan stanley's list of potential takeover targets over the next 12 months. we'll look at other big names on the wall street firm's list. ♪ when folks in the lower 48 think about what they get from alaska,

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introducing the 2014 glk. the engineering and the experience of mercedes-benz. see your authorized dealer for exceptional offers through mercedes-benz financial services. david: we asked you on twitter if you thought we should export natural gas, put pressure on russia and better business for natural gas producers. see what the viewers are saying. chris already tweeted. in. not if our natural gas reserves are not as plentiful as surveys indicate. we still have time for to you chime in. agree or disagree. tweet us, fbnatb. more answers coming up. cheryl: while you're tweeting, listen to this, u.s. corpses are sitting on more than one trillion dollars in cash and many companies are looking to put the cash to work in the form of acquisitions. according to morgan stanley there are more than 44 multi-billion dollar cap companies have the likelihood

receiving at least one tender offer in the next 12 months. here is a sampling of names that made its list. in the health care sector, celgene, express scripts and wellpoint. sinclair broadcasting wendy's dreamworks and jcpenney. in the tech world, brocade, sun power and teradyne. finally in the consumer staples area, hill shire brands, haines celestial and white wave foods made the list. visit facebook.com/afterthebell for the full list. pretty interesting. david: okay. question, would you ever make an incentral florida. bet against warren buffett? cheryl: oh, man. david: one stock guru is betting $25,000 that berkshire hathaway class b shares will do less well over the next 10 years than another group of stocks. cheryl: so where is he putting his money? here is the question. u.s. small cap stocks. we have global guru capital cio. so you are betting against there buffett was this something that you planned to go against

mr. buffett, or you're really excited and bullish about small caps and it worked out this way? >> well, you know, it is actually a combination of both. i was actually contacted by a client of mine about a month ago, asked me why his holding in berkshire hathaway has been underperforming the u.s. market over the past three, four, five years. so i did some research into that. and i wrote a piece where i outlined how berkshire essentially had become a surrogate, low volatility sure a got or u.s. stock market. that is a good to hold it but relatively stable bet. i made at that time uncontroversial -- cheryl: is this warren buffett lost it? is that the same piece that you're talking about you wrote? the title is pretty controversial, has warren buffett lot it. >> exactly. that was the original piece. i suggested that u.s. small caps would outperform warren buffett over the next 10 years. i thought that was a pretty

uncontroversial assertion given that u.s. small caps tend to outperform the broader s&p 500 by two or 3% a year. in fact they have outperformed warren buffett over the last, one, three, five, 10, even 15 years. but david rolf of wedgewood partners in st. louis contacted me after he read the piece he was willing to take buffett's side of the bet. so we communicated and we decided to put $25,000 on the line with the winner donating winnings to the other's favorite charity, to test this hypothesis. david: that is, it's a great requested. i love the idea. it would be interesting thing to figure out what is going to happen although it will take 10 years. i know it's a long-term bet. 10 years is a long time but how is it going so far, say in the three weeks since you made the bet? which has performed better, berkshire hathaway or russell 2000. >> well you know i think buffett heard about it, he must have heard about our bet, just the day we put on the bet, buffett, berkshire hathaway started to rally very, very strongly even

as u.s. small cap, russell 2000 etf which i bet on, against buffett has essentially remained stagnant. so thus far it is very much in berkshire's favor. 10 years is a long time. i'm pretty confident that u.s. small caps will outperform u.s. large caps over the next 10 years and i'm quite confident that's the way it is going to stay over that longer period of time. cheryl: are you confident that the small cap stocks names can actually outperform the s&p over the last decade? certainly has ininverse last 10 years? going forward you think this is lot of momentum for bigger names, dividend paying names? people want guaranties these days? >> sure, sure. the most, one of the most fundamental things in finance, kind of rules of thumb that stood the test of time is what they call the small cap effect this. goes all the way back to the 1920s, 19 teens, since

statistics have been kept on this issue. david swenson, who managed yale endowment, if he doesn't worry about draw downs, how much money the yale endowment would be losing he would, would be irrational for him not to invest purely in u.s. small cap stocks, given overtime they outperform the large cap counterparts by such an amount. to such a great, such an extent. that is actually has been the case over the past five, 10, 15 years as well. so over time, for example, over the last 15 years, small caps have outperformed large caps by an average of about 1.75, 2% a year. and that is pretty consistent over time, well, we're going to have to wait 10 years to figure out who's right. thanks very much for coming in. i appreciate it. nicholas vardi, from global guru capital. thank you very much. >> thanks for having me. cheryl: all right. so after a massive run-up over the past year the biotech sector has taken a big hit in recent days sparking fierce that a

biotech bubble is about to burst. is it time to head for the hills or is this a short-term blip? biotech bubble brawl is coming up next. david: i like the way you say that. irs will treat bitcoin like property, not currency. have you heard this? they will taxing you for any gains you made on bitcoin. what does that mean for you personally? have you sold bitcoin for a loss or a win? now you're growing to have to get the irs involved. we'll tell you how, coming up. ♪

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that's health in numbers. unitedhealthcare. cheryl: so after a massive run-up in biotech sector has seen a selloff over the past week. the nasdaq biotechs index falling more than 7% and the s&p biotech index is down 8% from friday. all that has got some on wall street saying biotech is in a bubble. david: so is this a bubble that is about to pop and is there time to get out if it is? joining us now is piper jaffray senior biotech analyst and managing director. jonathan kreske, mkm partners managing director and chief market technician. jonathan, let me go to you first. certainly biotech has some bubbly characteristics, does it not? >> absolutely. i think one of the main things we tried to highlight a few weeks ago, when looking at biotech sector, how extended had become from the long-term reference point, in this case,

200-day moving average. late february, early march it got 30% above that 200 day, with which is the rising spread above a rising 200 day since the tech bubble. david: were you forecasting a pullback like we've had? >> we put out a note on march 6th, saying risk/reward is no longer favorable and there were good odds we could see a fairly sizable correction. correction implies something is incorrect. what we've had is pull back, about 15% from peak to trough depending which index you're looking at. so the risk/reward is much better now. the question now becomes, you know, is this a bubble and i think it is too early for anybody to tell that right now. cheryl: so, ted, you don't think we're in a bubble in biotech right now. why do you think we're not in a bubble. >> that's right, cheryl. so i work through in the sector during the last bubble in 2000 and there are some very big differences between this cycle and with what he saw last time. the biggest thing we're seeing introduction of a lot of new

products or a lot of new drugs from the biotechnology sector. this is delivering fundamental growth that is both sustainable and really very robust for the big cap biotechnology plays. so if you actually run a screen of 10 plus billion dollar companies growing 20 plus% you only get a handful of companies. five of those are some of the top large cap biotech companies. you see very sustainable growth coming out of the big cap companies. while there are some pockets where we may see some multiple compression, some of these names like gilead -- cheryl: i would say you have got two picks. you keep referencing you like againer ron and novavax. you have two specific companies you're bullish on now. >> those are he correct. those are the our two top picks. david: novavax is up today. it popped eight 1/2% but come down. it still hasn't made up losses. jonathan what about ted says? he makes a good point unlike the

dot-com bust in 2000, 2001. these companies are making real things, having reeffect on marketplace and on quite a few patients. so there is more there there than in the tech boom bubble. >> again first thing i say those arguments were present a month ago as well and that doesn't preclude stocks from pulling back. in fact if stocks pull back in the face of booed news, that tells you that a lot of good news is priced in. it will be tougher to, you know, move forward. one other thing i will say, the difference that i see in this correction, it is biggest peak to trough correction we've seen well over a year. the difference is actual volume that is trading. if you look at volume, it blows away any prior correction we've ever seen going back 14 years so. david: so this pullback has real conviction is what you're saying? >> not just a lack of buyers. it is sellers actively getting out of positions and making a clear intent to sell. generally that is distribution that doesn't tend to end in a couple of days. so we'll see. we have to see if this bounce

can lead anywhere. if not than -- cheryl: ted respond to that then. he is saying that the, you look at volume of selling, pretty darn strong. there's your argument. what do you say. >> yeah, absolutely. i think what we're really seeing here is some profit-taking across the board. i think a period here of consolidation is probably good for the sector. as we've mentioned, biotechs really reached, you know, all-time highs in the last couple of years. multiyear bull market. my comment is that with some consolidation here that we are going to be able to achieve higher highs this year. i think that we're returning more toward a stock-pickers environment where it will not be one tide that lifts all boats. but rather select names with near-term drivers, near-term milestones, earnings growth and consensus to the upside that will be the best performers. david: jonathan, are you looking for picks in i mean has the pullback come back enough so that you could find some bargains out there. >> yeah. i think ted's right.

you want to look now and see which stocks are holding up best in the pullback. i tend -- david: what about the ones he mentioned, novavax and gilead and regeneron? i don't. >> i don't follow the stocks specifically. as we see some bounces maybe you will differentiate the potentially the good from the bad. one other thing i'll add. going back last five years, biotech, the best month of year for biotech has been march. it has been up every march for five years. when you see weakness in best month you see -- cheryl: that is bull-bear debate. gentlemen, thank you very much. david: thanks a lot, guys. bitcoin investors hoping that the irs might give them a pass. well they have to think again. irs announcing brand new rules for the digital currency today. if you gained or lost on bitcoin, you better listen up to this. cheryl: and the beer industry, seeking to get some buzz from a couple of the most popular tv

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david: well this is a treat. the irs announcing it will treat bitcoin and other virtual currencies like property, not currency. bitcoin investors though might

actually benefit from this decision. that remains to be seen. cheryl: how do you benefit from bitcoin? jo ling kent joins from us the newsroom. >> hey, guys. the irs ruling calls digital money property and not currency because it does not have legal tender status in any jurisdiction. this is already having a ripple effect in the bitcoin community but first this afternoon the irs stating this afternoon it will generally treat bitcoin like stock or other tangible property. profits would be treated as capital gains and could be subject to lower taxes but on the flipside, if you use bitcoin in retail transaction it would be a taxable event which means, you would have to figure out how much you made on the currency, how much you spent and pay taxes based off of that. so this is actually likely to affect companies like overstock.com. they're one of the first major companies to accept bitcoin. they haven't commented on the development just yet. but bitcoin users will be subject to mirrored keeping with the transactions and i've spoken with a few bitcoin leaders in the community and including over

at atlas. they're starting a global bitcoin platform for high frequency trading firms and big financial institutions. their chief marketing officer sass like, we don't mind the irs ruling t will help prevent volatility and maybe burnout we've seening with mt. gox. look, bitcoin is still the most transparent form of payment. mixed reactions from the bitcoin community so far these days. back to you like. cheryl: transparent is the word. jo ling kent, thanks very much. david: we asked you on twitter and facebook if we should begin to export natural gas to export to russia. the chick i'm that is his twitter code wrote in to say we should not be exporting any of our resources. germany should ramp up solar and europe to displace natural gas for power plants. they have been trying that. solar hasn't been working out too well. cheryl: thanks for commenting zippy. export technology to other countries and that is enough.

david: jo told us export natural gas, let the market decide. cheryl: there you go. go "off the desk." sustainable architecture firm terraform research group develop ad architectural rendering what new york city could look like if it could produce all of its own food and all the energy it needs. for that matter call it the city's road map to sustainability. features greenery on every building rooftop, construction of food towers with outdoor terraces where livestock could rome in manhattan. david: i'll believe it when i see it. i've heard this for many years. never see it happen. also "off the desk," do you love "star trek"? who doesn't love "star trek"? what about amc hit tv show, the walking dead. cheryl: don't know that one either. david: you're in luck, now you can brink like you're favorite characters. knew breweries come out with new tribute beers. they honor the favorite shows. canada's federation of beer announced it is brinking a cling

i don't know trekkie brew, klingon. it is coming up with appeal stout. it is blood red in color. cheryl: come on. david: in order to commemorate the "the walking dead." david: during st. paddy's day they turn beer green. so it has been done before. cheryl: we'll watch february's durable goods orders. economists expect a game of 1% up from january's. reflects big ticket items, refrigerators, cars and airplanes, all things david asman likes to collect. david: we have very interesting growth figure coming out this week that could directly affect the market. these are things investors are looking for. these are the things we cover here at fbn we hope you come back to see us tomorrow. cheryl: we had all the data on new home sales. case-shiller. more coming out tomorrow. david: for now "the willis report" is next. we asked people a question,

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gerri: hello, everybody, i'm gerri willis. right now on "the willis report", who is paying the most income taxes? a revealing look at what age bracket is paying the lion's share. also a new report on how many companies were notified by the feds about cybercrime but why weren't consumers notified too? how do you do that? spotting a fake rolex. we're watching out for you on "the willis report." gerri: welcome to the show. it's great to have you here tonight. we have new details emerging about what